EUR/CHF Daily Forecast January 31, 2012, Technical Analysis

The EUR/CHF pair fell during the session on Monday as traders sold most risk assets. However, this pair has a “floor” in it imposed by the Swiss National Bank at the 1.20 level, and this pair is getting a bit too close to that area. The daily candle formed a hammer as it bounced, and this could perhaps be a decent signal to go long. Certainly the central bank is behind the buyers, and the threat of intervention is always out there. With this in mind, we would consider buying on pullback on the smaller time frames knowing that the pair tends to grind – not skyrocket. However, if it fall s enough – the intervention could make you a lot of money when it happens.

EUR/CHF Daily Forecast January 31, 2012, Technical Analysis
EUR/CHF Daily Forecast January 31, 2012, Technical Analysis

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